An investigation has been launched what will happen next?

The Low Incomes Tax Reform Group have good advice on this, click here.

Can I get free advice?

Yes, look here.

Do the innocent have nothing to fear?

HMRC assumes that you are guilty unless you can prove otherwise. If you are not frightened at this point you have simply not been paying enough attention.

Can I represent myself?

If HMRC operated a more open and egalitarian system I’d say yes, however because of the many devious practices HMRC employes I have to say: if you have the money for a good tax advisor then that’s likely to be cash well spent. Notice I say “good” because bad tax advisors (and there are many) will be next to useless.

How do I find a good accountant / tax advisor?

If an investigation has been opened you need to find an accountant / tax advisor with experience in this area - many are just glorified number crunchers. Be prepared to interview a string of tax advisors: you are looking for somebody who appears to be a dove but is capable of turning hawkish should the occasion demand. Ideally the tax advisor will already know the member of HMRC who has opened the investigation and will have dealt with them in the past - successfully. If you can find a former HMRC inspector to represent you - there are quite a few about - that is a good start.

A good question to ask the prospective accountant is: “I’ve been invited to an interview, should I go alone?” If the tax advisor says “Yes” then avoid like the plague. A good tax advisor - if they decide to go to the meeting at all - will ask HMRC for a full meeting agenda and also get details of the depth of the investigation, ie: is is an aspect enquiry (serious) or a full enquiry (very serious). Tax Aid offer some useful starters here.

Should I go to the interview?

No, interviews are almost entirely for the benefit of HMRC. They will try to interpret a refusal to attend an interview as non co-operation but provided you answer all their questions in full and on time you can argue that you have complied with the investigation.

Should I record the interview?

Don’t go to the interview (see above). A recording will almost certainly put the investigator on the back foot. If you decide to go to the interview on your own (this is high risk) then you should certainly record what is said - when the tape runs out end the interview.